Should I fix if there's chance I'll go abroad

Laoshi

I currently have a lifetime tracker with HSBC at about 30% LTV.

I am very tempted with the security of fixing for 5 years. The amount I pay would be very similar to now.

However, there is a 50% chance that within the next 5 years, I need to go abroad for work. :j If that happens, I'd like to rent out my house.

If I do switch to a 5-year fix and then move abroad, would the lender insist I pay early redemption fees to move to a BTL?

Any advice is welcome. :beer:

lee111s

You may be able to apply for consent to let. In which case I don't believe you would pay an ERC but would more than likely attract a higher interest rate.

Thrugelmir

In answer to your question.

HSBC allows residential mortgage customers to stay on their existing rate if they rent a property for 12 months or less. If the rental period is longer, it expects customers to remortgage to a buy-to-let deal.

Laoshi

Thank you for your replies.

Thrugelmir - thanks for the info. Do you know if I would have to pay a ERC if the bank made me re-mortgage to a buy-to-let deal?

Thrugelmir

Laoshi wrote: »

Thrugelmir - thanks for the info. Do you know if I would have to pay a ERC if the bank made me re-mortgage to a buy-to-let deal?

Unfortunately not. Would seem unfair if they did. The increase in interest rate would seem adequate recompense from HSBC's perspective.